ALALAY SA KAUNLARAN, INC.

(ASKI): A
MULTI PURPOSE COOPERATIVE

CASEY JOEL C. LUMBA

BSBA 4
Introduction

ASKI, Alalay Sa Kaunlaran Inc., stands as a remarkable testament to the

transformative potential of community-driven initiatives in the Philippines. Its origins date
back to 1987, a period marked by political turbulence and uncertainty. During this
challenging time, compassionate Christian business leaders came together with a vision to
empower their fellow Filipinos and stimulate the growth of micro and small-to-medium
enterprises (MSMEs). With humble beginnings and limited resources, ASKI embarked on its
mission to reach out to small entrepreneurs and grassroots contributors to the microeconomy
who often found themselves excluded from traditional funding institutions.

In its formative years, ASKI dedicated itself to extending financial support and
resources to those who needed it the most. The organization’s founders understood the vital
role that microfinance played in enabling economic self-sufficiency and poverty alleviation.
As ASKI gained momentum and local support, it evolved into the ASKI Group of
Companies, Inc., a formidable force in the realm of microfinance. Today, this network
manages an extensive portfolio, operates an impressive network of 98 branches, and serves
over 100,000 clients while also providing insurance coverage to more than 800,000 members.

ASKI’s impact reaches far beyond its immediate communities. It has garnered
national and international recognition for its outstanding contributions to microfinance and
community development. Through strategic partnerships with institutions and like-minded
organizations, ASKI has been able to amplify its reach and influence. One significant
milestone in this journey occurred in 2015 with the enactment of Republic Act 10693, which
strengthened the role of microfinance NGOs like ASKI. This legislative support further
solidified ASKI’s position as a vital player in fostering economic growth and empowerment
on a broader scale.

The story of ASKI Is not merely one of financial success; it is a narrative of

resilience, compassion, and unwavering commitment to social change. ASKI’s journey
underscores the profound impact that grassroots initiatives can have in empowering
communities and creating a brighter, more inclusive future for all. It serves as an inspiring
example of how dedicated individuals and organizations can uplift those at the grassroots
level, ultimately leading to greater economic stability and improved quality of life for
countless Filipinos.
History

In October 1986, amidst the backdrop of the EDSA People Power Revolution in the
Philippines, a time marked by widespread unemployment and poverty due to political turmoil
and leadership transitions, the Alalay Sa Kaunlaran Inc. (ASKI) was conceived. A group of
Christian business leaders in Nueva Ecija recognized the urgent needs of their communities
and decided to establish an organization aimed at helping the people in their time of need.

Officially registered with the Securities and Exchange Commission (SEC) on March
23, 1987, ASKI was established as a non-stock, non-profit organization with a mission to
promote and develop micro and small-to-medium enterprises while also delivering vital
social services. It commenced its operations on July 1, 1987, with an initial fund of P460,000
provided by the Maranatha Trust of Australia. The organization reached out to small
entrepreneurs, marginalized individuals, and microeconomy players who lacked access to
larger funding institutions.

Over the years, ASKI expanded its services by establishing various Strategic Business
Units, evolving into the ASKI Group of Companies, Inc. These innovative institutions aimed
to address the socio-economic challenges in their operational regions, offering a range of
services from microfinance to education and cooperative ventures. ASKI’s journey, spanning
more than three decades, has been marked by significant milestones and the successful
overcoming of steep challenges, ultimately leading to its growth and the ability to serve not
only rural communities but also overseas Filipino workers.

With a current portfolio exceeding Php1.7 billion, 98 branches in Regions 1, 2, and 3,

and a clientele exceeding 100,000 clients, ASKI has left a lasting impact on both local and
international fronts. It has garnered trust and formed partnerships with various institutions
that share its mission, strengthening alliances within the microfinance industry in the
Philippines. Additionally, in 2015, ASKI welcomed the passage of Republic Act 10693, also
known as the “Microfinance NGOs Act,” which further reinforced and protected the vital role
of microfinance organizations like ASKI in serving micro entrepreneurs and impoverished
families, ensuring their access to essential financial services.
Microfinance Services

One of ASKI’s core functions is to provide microloans to individuals who may not
have access to traditional banking services. These microloans are typically small in amount
and are used by borrowers to start or expand their businesses, cover educational expenses, or
address other financial needs. ASKI often uses a group lending model, where members of a
borrowing group collectively guarantee each other’s loans, fostering a sense of community
and responsibility.

Community Development

ASKI Cooperative is not limited to financial services. It is actively engaged in various

community development projects aimed at improving the overall well-being of its members
and the communities it serves. These initiatives can include healthcare programs, educational
support, and vocational training to enhance the skills and employability of its members.

Recognition and Impact

Over the years, ASKI Cooperative has received recognition from both national and
international organizations for its exceptional work in poverty alleviation and social
development. Its efforts have contributed to the economic empowerment of countless
individuals and families, helping them break the cycle of poverty.

Sustainability and Growth

ASKI’s success can be attributed to its sustainable approach to microfinance and

community development. It often reinvests the profits it generates back into its programs and
expands its outreach to serve more underserved communities.

In summary, the Alalay sa Kaunlaran, Inc. (ASKI) Cooperative is a dynamic

organization with a rich history of supporting economic growth, financial inclusion, and
community development in the Philippines. Its commitment to empowering marginalized
groups through microfinance and related services has had a positive and lasting impact on the
lives of many Filipinos.

Challenges

Sources of funds- Considering the present economic situation local and internationally, one of
the pressing challenge for ASKI is likely to be able to identify and raise funds to finance its
projected growth.
Expansion- ASKI has significant potential for expansion. It can broaden geographical
outreach but should first focus on deepening market penetration.
Competition from other MFI’s/ Rural Banks- ASKI is facing a strong competition from other
players in microfinance segment. These competitors operate in the same market and offer
similar loan products.
Development of personnel- ASKI considers its people as its main assets; however, the biggest
challenge is to find those people whose commitment is also to serve the poor. ASKI is now
trying to work with a university that can offer short- term courses for microfinance.

ASKI’ s Mission

We endeavor to:
 Enhance spiritual life of our stakeholders through daily devotions, retreats and
Christian enrichment activities
 Ensure economic security of our clients by providing financial services and technical
expertise
 Link with domestic and foreign partners to realize community development programs
and projects
 Develop talents and skills of the Board of Directors/ Trustees, managers and
employees
 Safeguard resources, well- being and prestige of ASKI

REACH
ASKI operates in 21 branches serving 56, 212 clients in 14 cities covering 2,746 communities
in 9 provinces of Northern and Central Luzon.

CORPORATE INTEGRITY

ASKI takes pride in its competent personnel who are strongly committed to serve. We
stand by our six core values:

•God- Centeredness •Commitment to serve the needy

•Excellence • Stewardship
• Integrity • Respect for people

LOAN PRODUCTS

1. Alalay sa Kabuhayan Program (AKP): Group loan model for income generating
projects.
2. Individual Lending Program (ILP): This program caters to home-based businesses or
businesses inside and outside the public market or central business district. It aims
assist micro, small and medium enterprises with additional business capital and
entrepreneurial training for business expansion. Likewise, to create more jobs and
increase income.
3. Micro Housing -Alalay sa Pabahay Program (APP): Loan for house construction
improvement and lot purchase.
4. Micro- agri: Loan that caters to agricultural production and agri-business ventures in
agrarian communities.
5. Consumer Loan Programs
REFERENCES:

Alalay Sa Kaunlaran, Inc. (ASKI) as a social enterprise in the Philippines. (2009).

Socioeco.org.https://www.socioeco.org/bdf_fiche-document-1506_en.html

ASKI group of companies, Inc. (n.d.). ASKI Group of Companies, Inc.

https://www.aski.com.ph/AboutUs.aspx